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Ecuador’s dictator Correa seeks to emulate Cuba’s monetary policy

Following in the footsteps of his tyranny mentors Fidel and Raul Castro, Ecuador's dictator Rafael Correa wants to make sweeping changes in the country's monetary policy. By taking control of the banks and introducing dual currencies in the Ecuadorean economy, Correa hopes to further consolidate his corrupt grip on power while further impoverishing the people into submission. Just like his mentors did and continue to do in Cuba.

Congress has until the end of today to vote on President Rafael Correa’s proposal to change the South American nation’s financial laws, which would allow payments in “electronic money.” Lawmakers are debating whether to insist the central bank back the new currency with a one-to-one dollar guarantee.As a current-account deficit drains dollars from the economy, making it harder for Correa to fund a burgeoning budget gap, a new currency could be used to meet government payments, said Jaime Carrera, a former deputy finance minister and director of the Quito-based Fiscal Policy Observatory. It could also lose its value quickly if not backed by the central bank, he said.

Correa, who calls the South American country’s use of the greenback an economic “straitjacket,” has already started paying some pension obligations in government bonds, which brokers are refusing to redeem at face value.

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